Gulf Capital announced record profitability results for its private equity portfolio over the last twelve months (LTM) ending in Q3 2021.
The fair value of Gulf Capital’s $750 Million GC Equity Partners III (Fund III) soared by 67% in the Last Twelve Months, fuelled by the record profitability of its underlying portfolio companies.
This strong performance is a direct result of Gulf Capital adopting a thematic investment approach in 2015 and investing early in the sectors of the future, namely technology, fintech, healthtech, healthcare, business services, and sustainability.
The thematic investment approach is yielding strong dividends with Fund III portfolio companies reporting, on average, revenue growth of 28% over the last year and a remarkable surge in profitability (EBITDA) of 83% year on year.
Ranked by sectoral performance, the fastest growing investments were those in the fintech sector (with EBITDA profitability up 109% year on year), healthcare (up 74%), technology (up 54%), sustainability (up 31%) and business services (up 23%) respectively. Most portfolio companies have exceeded their pre-pandemic 2019 profitability and, in fact, are accelerating their growth in the current environment. Long-term secular trends like the change in consumer behavior, the shift to online ecommerce, the rise of telemedicine and the boom in digital payments during the pandemic are benefitting Gulf Capital’s portfolio companies, resulting in a surge in revenues and profitability.
Gulf Capital also announced expansion plans across Asia and the establishment of a new office in Singapore to cover its Southeast Asia and Indian investments. The Firm is currently hiring a deep bench of Asian private equity and operating experts to effectively connect the Gulf region with the rest of Asia across this fast-growing East-West Asian corridor, named Ascending Asia.
